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The Theological Foundations of Islamic Banking: A Critical Review

  • Md. Thowhidul Islam
Chapter

Abstract

The most important characteristic of Islamic banking is to maintain its operations and products according to the principles of Shari’ah. Islamic banking is growing rapidly in the modern economic world as an alternative to the conventional banking. It is expected that Islamic banking operations will comply with the Shari’ah law and will contribute towards achieving the Maqasid al-Shari’ah (objectives of Shari’ah), which is ultimate attainment of total welfare of the Muslim Ummah and the human being at large. The findings of the several studies show that Shari’ah compliance is the single most important factor for choosing Islamic banking. Hence, understanding the Shari’ah as the foundation of Islamic banking deemed important. This chapter aims at reviewing the Shari’ah and its concerned components with a view to have a clear understanding about the Shari’ah and its principles to govern economic activities in the society.

Keywords

Islamic banking Shari’ah compliance Profit–loss sharing Maqasid al-Shari’ah 

JEL Classification

G20 G21 G28 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Md. Thowhidul Islam
    • 1
  1. 1.International Islamic University ChittagongChittagongBangladesh

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